Porterhouse Company Has Both Fixed and Variable Production Costs

question 71

Multiple Choice

Porterhouse Company has both fixed and variable production costs.If volume goes up by 20%,how would that affect the total variable costs? (Assume all volumes are within the relevant range.)

• A) Would go down
• B) Would remain the same
• C) Would go up 20%
• D) Would go up by some amount less than 20%

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Definitions:

Goods And Services

The outputs offered by businesses and individuals which can be tangible products or intangible activities performed for others.

Within The Organization

Refers to actions, processes, or dynamics that occur inside a company, institution, or group.

Procurement Organization

An entity responsible for acquiring goods and services needed by a company or institution to function effectively.

Purchasing

The process of acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.